Moelven considers Norsälven mill closure1 September 2017
Moelven is considering closing the Norsälven sawmill because of the extensive investment that is necessary at the facility.
Moelven timber division manager Anders Lindh said that even with extensive investment at Norsälven it would be difficult to achieve a future-oriented and profitable plant.
“Considering closing a company is never easy,” he said.
“Unfortunately, Moelven Norsälven currently has a very low technical status and requires extensive ongoing maintenance to keep up operations.”
Mr Lindh said that overall investment required at the mill – which has annual revenue of around SEK200m – would be at least SEK70m in the next three years.
However, two of Moelven’s other large sawmills in Sweden – Moelven Valåsen AB and Moelven Notnäs AB – are in the midst of a development programme and will have increased production capacity to compensate for a an eventual closure of Moelven Norsälven.
“Moelven’s overall production of sawn timber can be maintained at the same level, while efficiency and profitability is strengthened,” added Mr Lindh.
“Customers and suppliers will therefore not be affected by an eventual closure of Moelven Norsälven and restructuring of operations.”